Global fruit and vegetable distributor Total Produce has agreed to buy a 45pc stake in US-based Dole Food for $300m (€242m).

Dole is one of the world's largest fresh produce companies, and a producer and marketer of fresh fruit and vegetables.

In the twelve months to October 2017 it generated revenue of $4.5bn and earnings of $237m.

The transaction consideration for the 45pc interest implies a Dole enterprise value of approximately $2bn, and roughly nine times the adjusted earnings of the company.

The company is buying the stake from David Murdock, who will continue in the role of chairperson of Dole, with Carl McCann, chairperson of Total Produce, taking up the role of vice-chairperson of Dole.

"We are delighted to have signed an agreement with Dole, long held in the highest regard as one of the world's best fresh produce companies, with iconic brands dating back to 1851,” Mr McCann said.

In announcing the transaction, Total Produce described it as a “significant step” in the company's history, and a continuation of its successful expansion strategy.

"It places Total Produce at the forefront of our industry, and we anticipate it will create significant additional value for shareholders in the years ahead," Mr McCann said.

The deal brings together two of the world's main fresh produce companies, with complementary market positions in various product segments and geographies.

Dole occupies a leading market positions and scale in several markets – based on estimates the company has the number one and number three positions in bananas in North America and Europe, and number two and three positions in pineapples in North America and Europe.